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BUS REPLACEMENT POLICY

This paper outlines a generalised model for the economic evaluation of bus replacements. It suggests that a warrant for replacement does not necessarily follow from a satisfactory outcome of an economic evaluation and that deferral of replacement may be justified. The model calculates net user benefits, maintenance cost savings and salvage values for projects involving the replacement of various aged buses. The summary criteria, net present value and benefit-cost ratios are determined for replacement and for deferral of replacement by one year. The difference in project net present values is used to determine the age beyond which continued operation of a bus is not warranted. /Author/TRRL/